SAMANA STEEL ROLLING MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners in these three writ petition Nos. 6553, 6947 and 6952 of 1992 have an identical grievance. These can, therefore, be disposed of by one order. Learned counsel for the parties are agreed that the facts as stated in Civil Writ Petition No. 6553 of 1992 are representative of the correct position. These may be briefly noticed.

(2.) THE petitioner is a partnership firm which has set up a rolling mill at Mandi Gobindgarh. It started production on November 1, 1990. The petitioner avers that it submitted a classification list to the Department of Central Excise in which it described its product as 'bars'. On November 15, 1990, the petitioner was given a notice to show cause as to why its product be not classified as 'hooks and Flat Products' instead of 'bars'. Finally, the classification list of the petitioner was modified and approved as 'flats' with effect from November 1, 1990. Thereafter, the petitioner has been assessed for the levy of excise duty on the basis that it was producing 'flats'.

(3.) ON December 20, 1990, the Custom Excise Gold Appellate Tribunal gave a decision presumably to the effect that products such as those produced by the petitioner have to be classified as 'other Bars and Rods' and not as 'flats'. The Department of Excise and Customs challenged this decision before the Apex Court by filing a petition for Special Leave on March 25, 1991. However, on April 6, 1992, the Superintendent, Central Excise informed the petitioner that the products "may be treated and cleared as 'other Bars and Rods' --- on an undertaking that you will abide by the out-come and decision of the Hon'ble Supreme Court of India---". This was followed by a corrigendum dated April 28, 1992. The petitioner was informed that on reconsideration "the classification list is approved as 'other Bars and Rods' on payment duty at the rate of Rs. 800 PMT (BED) plus 15% SED on BED. " However, the petitioner was called upon to file an undertaking to abide by the final out-come and decision of the S. L. P. filed by the Department.